Clothing Brands Continue To "Shrink" The Future Opportunities In The Three Or Four Tier Cities

On the occasion of "double 11" online shopping carnival, another record of online sales is coming.

Recently, Giordano, the casual wear brand, announced that it closed 73 stores in the third quarter.

At present, there are only 2 stores in Chengdu Chunxi Road business circle.

The industry believes that, by its own business mode restrictions, coupled with the impact of e-commerce and international parity brand, the pformation of local brand clothing entities has become the top priority of the current development.

Yesterday, reporters visited.

It is found that at present, there are only two shops left by Giordano on Chun Xi road. The reporter then inquires into his official website. There are altogether 18 shops in Chengdu.

In the western section of Chunxi Road, the Giordano store of Jin Lang Kai Department store, the reporter noticed that only a few customers were picking products in 20 minutes.

It is understood that Giordano closed 74 retail stores in the third quarter, including 63 in the mainland of China.

Sales in mainland China amounted to HK $341 million, down 5% from the same period last year, which has hit Giordano's lowest in the last 11 quarters.

People in the industry have pointed out that the market is almost saturated, it is difficult to allow too many stores, similar brands in the mainland "shrink" is not new.

As a matter of fact, following the launch of the sports brand last year, men's clothing enterprises subsequently closed shop.

Women's clothing enterprises are also having a bad time.

In the first half of this year, IgG has closed 88 stores in the Chinese market, and its performance is on the decline.

Its Esprit owns 38 brands in China last year.

"At the end of last year, we began to pay close attention to the continuous closure of local sports brand stores."

Lin Yong, Deputy Secretary General of Chengdu apparel (apparel) Industry Association, analyzed that many well-known clothing enterprises in China were born in the mid 90s of last century.

Because of the relative shortage of clothing resources in the whole country at that time, in order to expand the market rapidly, most garment enterprises adopted the mode of increasing the number of stores to pursue profits.

But in fact, the development speed is too fast, which will inevitably lead to internal management, human resources and working capital.

"One street has opened two or three own brand stores, such self strangulation has turned into a vicious competition."

Lin Yong said.

Such a business model, to a certain extent, is a hidden danger for the current closed shop tide.

Network consumption changing distribution mode

Reporters learned that in recent years, with rising raw materials and labor costs continue to soar, constantly compressing the profit margins of garment enterprises.

At the same time, the rapid development of international parity fashion brands entering the Chinese market and e-commerce has caused a great impact on local clothing brands.

"100% of the sales of former clothing stores came from offline, and only 70% now come from offline."

A brand marketing director said that at present, post-80s and post-90s consumers are already accustomed to shopping online. Clothing brands must recognize this change. "The total sales volume of clothing has not been reduced, and the overall trend is increasing, but the way of cake distribution has changed."

Future opportunities in three or four tier cities

Lin Yong analyzed that under the current market, the brand must do well in the market, and we must do a good job in the study of the target audience.

At present, the mass consumption market has changed from the mass market to the sub market and the elite market. However, we must do a good job of studying this kind of people.

"Clothing enterprises must increase their efforts to expand the three or four tier cities."

Lin Yong told reporters that with the rise of the consumption level of the three or four tier cities, this is an opportunity that all local garment enterprises can not miss.